Chinese Shadow Bank Announces Insolvency, Government Announces Investigation

The big concern about the failure of Chinese real estate titans Evergrande Group and Country Garden was that their financial collapse would spread into the rest of the economy. Specifically, the concern was that so-called shadow banks, which were involved in many of these property deals, would be impacted. And sure enough last week a major shadow bank called Zhongzhi Enterprise Group sent a letter to investors announcing it was insolvent.Read More